“Tallgrass Energy delivered another outstanding quarter supported by
growth in distributions from Rockies Express, growth in our Processing
and Logistics Segment, contributions from our recent Terminals and
NatGas Operator acquisition and continued performance in our Crude Oil
and Logistics segment," said Tallgrass Energy President and CEO David G.
Dehaemers Jr. "We remain well-positioned to deliver record distributable
cash flow and distribution coverage metrics at TEP for 2017."

First Quarter Distributions

Tallgrass Energy Partners, LP

As previously announced, the board of directors of TEP's general partner
declared a quarterly cash distribution of $0.835 per common unit for the
first quarter of 2017. This quarterly distribution represents $3.34 on
an annualized basis, a sequential increase of 2.5 percent from the
fourth quarter 2016 distribution and an increase of 18.4 percent from
the first quarter 2016 distribution. The quarterly distribution will be
paid on Monday, May 15, 2017, to unitholders of record as of the close
of business on Friday, April 28, 2017.

In addition, as previously announced in conjunction with the recent
acquisition of an approximate 25 percent interest in Rockies Express
Pipeline LLC, management intends to recommend to the board of directors
of TEP’s general partner that TEP increase its quarterly distributions
for the second and third quarters of 2017 by an aggregate of at least
$0.10 per unit, or $0.40 per unit on an annualized basis. These
distributions would be paid in mid-August and mid-November of 2017,
respectively.

Tallgrass Energy GP, LP

Also, as previously announced, the board of directors of TEGP's general
partner declared a quarterly cash distribution of $0.2875 per Class A
share for the first quarter of 2017. This quarterly distribution
represents $1.15 per Class A share on an annualized basis, a sequential
increase of 3.6 percent from the fourth quarter 2016 distribution and an
increase of 36.9 percent from the first quarter 2016 distribution. The
quarterly distribution will be paid on Monday, May 15, 2017, to Class A
shareholders of record as of the close of business on Friday, April 28,
2017.

Tallgrass Energy Partners, LP Summary Financial
Information(1)

Three Months Ended March 31,

(in thousands, except coverage and per unit data)

2017

2016

As Reported in2016

Net income attributable to partners

$

70,905

$

47,755

$

44,070

Add:

Interest expense(2)

14,689

7,499

7,499

Depreciation and amortization expense(2)

21,867

22,482

21,967

Distributions from unconsolidated investment

30,819

634

—

Non-cash (gain) loss related to derivative instruments(2)

(2,441

)

8,990

8,990

Non-cash compensation expense (3)

1,458

1,166

1,166

Less:

Equity in earnings of unconsolidated investment

(20,738

)

(709

)

—

Gain on disposal of assets

(1,448

)

—

—

Adjusted EBITDA

$

115,111

$

87,817

$

83,692

Add:

Deficiency payments received, net

16,071

7,157

Less:

Cash interest cost

(13,567

)

(6,821

)

Maintenance capital expenditures, net

(63

)

(2,168

)

Distributable Cash Flow

117,552

81,860

Less:

Distributions

(91,366

)

(68,884

)

Amounts in excess of distributions(4)

$

26,186

$

12,976

Distribution coverage

1.29

x

1.19

x

Common units outstanding(5)

72,438

68,423

Distribution per common unit

$

0.8350

$

0.7050

(1)

The financial results for all periods presented in the table
include the applicable results of operations of Tallgrass
Terminals, LLC and Tallgrass NatGas Operator, LLC, which were
acquired by TEP effective January 1, 2017, except for the period
under the column "As Reported in 2016."

On April 12, 2017, Ultra Resources, Inc. ("Ultra") announced that it had
completed its restructuring and emerged from bankruptcy. The
reorganization plan contemplates payment of REX’s $150 million claim
within three months after Ultra emerges from bankruptcy. Based on the
timing of Ultra's emergence, REX expects to receive its cash payment no
later than July 12, 2017. TEP will receive its approximate 50 percent
share of an expected distribution of approximately $150 million from REX
resulting from Ultra's settlement payment.

Conference Call

Please join Tallgrass Energy for a conference call and webcast to
discuss first quarter 2017 results at 3:30 p.m. Central Time on
Wednesday, May 3, 2017. Interested parties may listen via a link posted
on the Investor Relations section of our website and the replay will be
available on our website for at least seven days following the live call.

Tallgrass Energy Partners, LP Alternative
Reconciliations

Adjusted EBITDA and Distributable Cash Flow, as defined in "Non-GAAP
Measures" below, may be impacted by the timing of cash payments
received as a result of shipper deficiency payments received or utilized
during the period or incremental barrels shipped during the period. As
such, we have also provided alternative reconciliations of Adjusted
EBITDA and Distributable Cash Flow that illustrate the impact of these
items. These alternative reconciliations are also non-GAAP Measures.
Management believes this information provides investors useful
information regarding the impact of these items on our current results
as well as the potential impact on future results.

Alternative distributable cash flow and alternative
distribution coverage shown excludes the impact of cash flows from
incremental barrels shipped on the Pony Express system, as
incremental barrels shipped during current periods may reduce the
shippers' firm commitment in future periods under their firm,
take-or-pay contracts, thereby potentially reducing cash flows in
those corresponding future periods. Under this alternative
calculation, the cash flows received from incremental barrel
shipments would be shown in the future periods in which the
incremental barrels are utilized to reduce the shippers' firm
commitment.

Tallgrass Energy Partners, LP Segment Overview(1)(2)

The first quarter 2017 comparative results by segment are summarized
below:

Three Months Ended March 31,

2017

2016

As Reported in2016

(in thousands)

Crude Oil Transportation & Logistics

Operating income

$

44,715

$

53,961

$

52,666

Add:

Depreciation and amortization expense(3)

13,879

13,433

12,918

Distributions from unconsolidated investment

694

634

—

Less:

Adjusted EBITDA attributable to noncontrolling interests

(871

)

(1,043

)

(1,043

)

Non-cash gain related to derivative instruments(3)

(650

)

—

—

Segment Adjusted EBITDA

$

57,767

$

66,985

$

64,541

Three Months Ended March 31,

2017

2016

As Reported in2016

(in thousands)

Natural Gas Transportation & Logistics

Operating income

$

18,168

$

12,345

$

10,664

Add:

Depreciation and amortization expense

4,783

5,878

5,878

Distributions from unconsolidated investment

30,125

—

—

Non-cash (gain) loss related to derivative instruments

(116

)

44

44

Other income, net

70

566

566

Segment Adjusted EBITDA

$

53,030

$

18,833

$

17,152

Three Months Ended March 31,

2017

2016

(in thousands)

Processing & Logistics

Operating income

$

4,116

$

178

Add:

Depreciation and amortization expense(3)

3,205

3,171

Non-cash gain related to derivative instruments

210

—

Less:

Gain on disposal of assets

(1,448

)

—

Adjusted EBITDA attributable to noncontrolling interests

(8

)

2

Segment Adjusted EBITDA

$

6,075

$

3,351

(1)

The financial results for the Crude Oil Transportation and
Logistics and Natural Gas Transportation & Logistics segments for
the three months ended March 31, 2016, have been recast to reflect
the results of operations of Terminals and NatGas, respectively,
which TEP acquired effective January 1, 2017. The financial
results for the Crude Oil Transportation and Logistics and Natural
Gas Transportation & Logistics segments for the three months ended
March 31, 2016, under the column "As Reported in 2016," does not
include Terminals and NatGas's results of operations.

(2)

Segment reporting does not include corporate general and
administrative costs or intersegment eliminations.

(3)

Net of noncontrolling interest.

TEP acquired a 25 percent interest in REX effective May 6, 2016, and an
additional 24.99 percent interest in REX effective March 31, 2017. TEP's
consolidated Adjusted EBITDA, as shown above, includes TEP's membership
interest in REX. The table below is a reconciliation of REX's Adjusted
EBITDA and Distributable Cash Flow for the three months ended March 31,
2017 and 2016, presented to provide additional information on REX's
financial results. Results for the three months ended March 31, 2016 are
presented for comparative purposes only, as TEP did not own a membership
interest in REX during that period.

Cash general and administrative expenses attributable to Tallgrass
Equity

(500

)

(500

)

Cash available for distribution by Tallgrass Equity

45,871

33,156

Distributions to Class A (TEGP)

16,697

10,022

Distributions to Class B (Exchange Right Holders)

28,507

22,996

Total cash distributions by Tallgrass Equity

$

45,204

$

33,018

TEGP

Distributions from Tallgrass Equity

$

16,697

$

10,022

Less:

Distributions to Class A shareholders

(16,697

)

(10,022

)

Amounts in excess of distributions

$

—

$

—

Distribution coverage

1.00

x

1.00

x

Class A shares outstanding

58,075

47,725

Distribution per Class A share

$

0.2875

$

0.2100

(1)

Represents distributions expected to be received by Tallgrass
Equity from TEP on or about May 15, 2017, in connection with TEP's
distribution for the quarter ended March 31, 2017.

TEP's Non-GAAP Measures

Adjusted EBITDA and Distributable Cash Flow are non-GAAP supplemental
financial measures that TEP management and external users of our
consolidated financial statements and financial statements of our
subsidiaries and unconsolidated investments, such as industry analysts,
investors, lenders and rating agencies, may use to assess:

• our operating performance as compared to other publicly traded
partnerships in the midstream energy industry, without regard to
historical cost basis or, in the case of Adjusted EBITDA, financing
methods;

• the ability of our assets to generate sufficient cash flow to make
distributions to our unitholders;

• our ability to incur and service debt and fund capital expenditures;
and

• the viability of acquisitions and other capital expenditure projects
and the returns on investment of various expansion and growth
opportunities.

We believe that the presentation of Adjusted EBITDA and Distributable
Cash Flow provides useful information to investors in assessing our
financial condition and results of operations. Adjusted EBITDA and
Distributable Cash Flow should not be considered alternatives to net
income, operating income, net cash provided by operating activities or
any other measure of financial performance or liquidity presented in
accordance with GAAP, nor should Adjusted EBITDA and Distributable Cash
Flow be considered alternatives to available cash, operating surplus,
distributions of available cash from operating surplus or other
definitions in our partnership agreement. Adjusted EBITDA and
Distributable Cash Flow have important limitations as analytical tools
because they exclude some but not all items that affect net income and
net cash provided by operating activities. Additionally, because
Adjusted EBITDA and Distributable Cash Flow may be defined differently
by other companies in our industry, our definition of Adjusted EBITDA
and Distributable Cash Flow may not be comparable to similarly titled
measures of other companies, thereby diminishing their utility.

We generally define Adjusted EBITDA as net income excluding the impact
of interest, income taxes, depreciation and amortization, non-cash
income or loss related to derivative instruments, non-cash long-term
compensation expense, impairment losses, gains or losses on asset or
business disposals or acquisitions, gains or losses on the repurchase,
redemption or early retirement of debt, and earnings from unconsolidated
investments, but including the impact of distributions from
unconsolidated investments. We also use Distributable Cash Flow, which
we generally define as Adjusted EBITDA, plus deficiency payments
received from or utilized by our customers and preferred distributions
received from Pony Express in excess of its distributable cash flow
attributable to our net interest, less cash interest expense,
maintenance capital expenditures, distributions to noncontrolling
interests in excess of earnings allocated to noncontrolling interests,
and certain cash reserves permitted by our partnership agreement. For a
reconciliation of these non-GAAP measures to their most directly
comparable GAAP financial measures, please see "Summary Financial
Information" above.

Cautionary Note Concerning Forward-Looking
Statements

Disclosures in this press release contain “forward-looking statements.”
All statements, other than statements of historical facts, included in
this press release that address activities, events or developments that
management expects, believes or anticipates will or may occur in the
future are forward-looking statements. Without limiting the generality
of the foregoing, forward-looking statements contained in this press
release specifically include TEP's ability to achieve record
distributable cash flow and distribution coverage in 2017, whether there
will be any and, if so, the amount of, TEP's quarterly distribution
increases during the second and third quarters of 2017 and the amount of
any distribution from REX resulting from Ultra's expected settlement
payment. Forward looking statements may also include the expectations of
plans, strategies, objectives and growth and anticipated financial and
operational performance of TEP, TEGP and their subsidiaries, including:
the ability to pursue expansions and other opportunities for incremental
volumes; natural gas and crude oil production growth in TEP's operating
areas; expected future benefits of acquisitions or expansion projects;
timing of anticipated spending on planned expenses and maintenance
capital projects; and distribution rate and growth, including
variability of quarterly distribution coverage. These statements are
based on certain assumptions made by TEP and TEGP based on management’s
experience and perception of historical trends, current conditions,
anticipated future developments and other factors believed to be
appropriate. Such statements are subject to a number of assumptions,
risks and uncertainties, many of which are beyond the control of TEP and
TEGP, which may cause actual results to differ materially from those
implied or expressed by the forward-looking statements. These include
risks relating to TEP and TEGP’s financial performance and results,
availability of sufficient cash flow to pay distributions and execute
their business plans, the demand for natural gas storage, processing and
transportation services and for crude oil transportation services,
operating hazards, the effects of government regulation, tax position
and other risks incidental to transporting, storing and processing
natural gas or transporting crude oil and other important factors that
could cause actual results to differ materially from those projected,
including those set forth in reports filed by TEP and TEGP with the
Securities and Exchange Commission. Any forward-looking statement
applies only as of the date on which such statement is made and TEP and
TEGP do not intend to correct or update any forward-looking statement,
whether as a result of new information, future events or otherwise,
except as required by law.

Tallgrass Energy Partners, LP Financial
Statements

TALLGRASS ENERGY PARTNERS, LP

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

March 31, 2017

December 31, 2016

(in thousands)

ASSETS

Current Assets:

Cash and cash equivalents

$

1,198

$

1,873

Accounts receivable, net

57,274

59,536

Gas imbalances

636

1,597

Inventories

15,647

13,093

Derivative assets at fair value

304

10,967

Prepayments and other current assets

6,785

7,628

Total Current Assets

81,844

94,694

Property, plant and equipment, net

2,085,670

2,079,232

Goodwill

343,288

343,288

Intangible asset, net

92,764

93,522

Unconsolidated investments

935,918

475,625

Deferred financing costs, net

3,930

4,815

Deferred charges and other assets

9,242

11,037

Total Assets

$

3,552,656

$

3,102,213

LIABILITIES AND EQUITY

Current Liabilities:

Accounts payable

$

22,050

$

24,122

Accounts payable to related parties

6,175

5,935

Gas imbalances

1,473

1,239

Derivative liabilities at fair value

—

556

Accrued taxes

21,857

16,996

Accrued liabilities

6,783

16,702

Deferred revenue

77,067

60,757

Other current liabilities

6,001

6,446

Total Current Liabilities

141,406

132,753

Long-term debt, net

1,960,232

1,407,981

Other long-term liabilities and deferred credits

7,125

7,063

Total Long-term Liabilities

1,967,357

1,415,044

Commitments and Contingencies

Equity:

Predecessor Equity

—

82,295

Limited partners (72,184,472 and 72,485,954 common units issued and
outstanding at March 31, 2017 and December 31, 2016, respectively)

2,045,163

2,070,495

General partner (834,391 units issued and outstanding at March 31,
2017 and December 31, 2016)

(635,406

)

(632,339

)

Total Partners' Equity

1,409,757

1,520,451

Noncontrolling interests

34,136

33,965

Total Equity

1,443,893

1,554,416

Total Liabilities and Equity

$

3,552,656

$

3,102,213

TALLGRASS ENERGY PARTNERS, LP

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)

Three Months Ended March 31,

2017

2016

(in thousands, except per unit amounts)

Revenues:

Crude oil transportation services

$

84,331

$

94,572

Natural gas transportation services

31,685

29,280

Sales of natural gas, NGLs, and crude oil

15,381

13,926

Processing and other revenues

13,003

9,390

Total Revenues

144,400

147,168

Operating Costs and Expenses:

Cost of sales (exclusive of depreciation and amortization shown
below)